Education
It depends on your income. MFS has different rules.
If your AGI is less than $150,000
- Your active participation means that the loss last year would have been deducted from your income (up to $25,000)
- Your rental Sch E income goes to Sch 1 line 5. Take a look at last year's return and you will see the rental loss in there.
If your AGI was higher:
- Your passive income loss was not allowed and is carried forward to go against passive income this year.
- Form 8582, Passive Activity Loss Limitations Part IV is completed to fill in part 1 line 1c with last year's loss. In part II, you can see the income come into play with the calculations.
The program will do the work for you and you can print, sign, and mail with tracking.
Reference: Instructions for Form 8582, Passive Activity Loss Limitations
